How to Form a US LLC — A Complete Beginner Guide (2026)

Starting a Limited Liability Company (LLC) in the United States is one of the most popular ways to set up a small business. An LLC is flexible, affordable, and protects your personal assets — which is why millions of entrepreneurs, freelancers, and online business owners choose this structure every year.

Whether you live inside the United States or abroad, this guide will walk you through the exact steps to form a US LLC — in simple English — from start to finish.

What Is an LLC?

An LLC (Limited Liability Company) is a legal business structure in the US. It separates your personal money and assets from your business.

So if your business is sued or has debts, your personal assets (car, house, savings) are normally protected.

✅ Key benefits of an LLC:

• ✔ Protects your personal assets
• ✔ Simple to manage
• ✔ Flexible taxation
• ✔ Professional business identity
• ✔ Can be formed by US and non-US residents

Who Should Form an LLC?

An LLC is suitable for:

✔ Freelancers
✔ Consultants
✔ Online store owners
✔ Service providers
✔ Startups
✔ Content creators
✔ International entrepreneurs

If you want a low-cost, flexible, and safe way to operate your business, an LLC is a great option.

Step 1 — Choose Your State

You must choose Which state to register your LLC in.

If you live in the US:

Register in your home state

Because:

• You must still register there anyway
• Taxes & licenses apply locally

If you are NOT in the US:

The most popular states are:

⭐ Wyoming
⭐ Delaware
⭐ New Mexico

Because they offer:

• Low fees
• Strong privacy
• Business-friendly laws

💡 Wyoming is often considered the best beginner-friendly state.

Step 2 — Choose a Business Name

Your LLC name must be unique in your state and usually must include:

LLC
L.L.C.
Limited Liability Company

Example:

American Vault X LLC

Rules to remember:

Must not match an existing company
✔ Cannot include restricted words (like “bank” or “university”)
✔ Should look professional

Most states allow a free online name search before filing.

Step 3 — Choose a Registered Agent

A Registered Agent is a person or company that receives legal mail for your LLC.

Requirements:

✔ Must have a physical address in the state
✔ Available during business hours

If you live outside the US →
You MUST use a registered agent service.

Typical cost: $50–$150 per year

Step 4 — File the Articles of Organisation

This is the official application to create your LLC.

You submit it to the state, either:

✔ Online
or
✔ By mail

Costs vary by state:

• Wyoming — ~$100
• New Mexico — ~$50
• Delaware — ~$90+
• California — ~$70 (plus annual fees)

Once approved, your LLC is officially born

You will receive:

Certificate of Formation (or similar document)

Keep this safe.

Step 5 — Create an Operating Agreement

An Operating Agreement explains how your LLC will run.

Even if you are the only owner, it is still important because it:

✔ Proves your LLC is separate from you
✔ Helps open bank accounts
✔ Helps resolve disputes

Some states require it.
All banks prefer it.

This document includes:

• Business name & address
• Members/owners
• Profit-sharing
• Responsibilities

Many formation companies include it.

Step 6 — Get an EIN (Tax ID)

An EIN (Employer Identification Number) is like a Social Security Number for your business.

You need it for:

✔ opening a US bank account
✔ paying taxes
✔ hiring employees
✔ Stripe / PayPal verification

You can apply for an EIN directly from the official IRS website, and the application process is completely free.https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers

If you live in the US:

You can apply for free with the IRS online.

If you live outside the US:

You can still get an EIN — but the process is different (mail or fax).
Some companies assist with this.

Step 7 — Open a Business Bank Account

Never mix personal and business money.

A business account:

✔ protects your liability
✔ looks professional
✔ simplifies accounting

You may open:

• a traditional US bank
• or a fintech platform (online bank)

Requirements depend on your residency & bank.

Step 8 — Understand Taxes

An LLC is not a tax type — it is a business structure.

Default tax treatment:

✔ Single-member LLC
Taxed as a disregarded entity / sole proprietorship

✔ Multi-member LLC
Taxed as a partnership

You may also elect S-Corp status later (US-based owners only).

Always speak with a tax professional

Especially if you are outside the US or earning a high income.

Ongoing Requirements

To keep your LLC active:

✔ File Annual Report (if required)
✔ Maintain Registered Agent
✔ Renew licenses
✔ Keep records
✔ Pay taxes

Fees vary by state.

Common Mistakes to Avoid

Mixing personal & business money
Using a fake address
Ignoring annual fees
Copy-paste online forms without understanding
Not tracking income
Forgetting taxes

Doing it correctly from day one protects you.

Can Non-US Residents Form an LLC?

YES — absolutely.

You do NOT need:

❌ US citizenship
❌ US visa
❌ US address
❌ US social security number

But you DO need:

✔ Registered agent
✔ EIN
✔ Business purpose
✔ Bank solution

LLCs are very popular among global entrepreneurs.

When Should You Get Professional Help?

Consider hiring assistance if:

You feel confused
You want everything done correctly
You are busy
Your business earns a high income

Many founders prefer professional support.

If you decide an LLC is the right structure for your business, you can follow our step-by-step guide on How to Form a US LLC — A Complete Beginner Guide (2026) to set up your company correctly from the start.https://americanvaultx.com/non-us-residents-open-us-llc/

Final Thoughts

Forming a US LLC is one of the simplest and smartest ways to start a business. It gives you:

✔ Protection
✔ Flexibility
✔ Trust
✔ Global opportunity

Whether you run an online store, consulting business, agency, or startup, an LLC gives you a strong legal foundation.

Disclaimer

This article is for educational purposes only and is not legal or tax advice. Please consult a qualified professional for your specific situation.

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Written by the AmericanVaultX Team — business startup guides & practical insights.”